Average used car values remain strong

Posted on

Dec 10, 2015

According to information from the BCA, the average value for used cars reached record levels in November.æ Yet another strong month in price performance within the used car market was reported.
The average value for used cars sold at the BCA during November rose to £8, 126, which was a £136 rise (1.6 per cent) on the previous month.æ This was doubly impressive, with performance against CAP Clean falling by half a percentage point to 96.15 per cent.
A change in the sector mix contributed to the rise, with higher value fleet and lease cars having higher representation during the month.
Year-on-year, the average values rose by £51, and both age static and mileage continued to fall.æ Performance against CAP increased by nearly one percent compared to 2014.
The average values for both fleet lease and part-exchange cars both fell back slightly when compared to the record levels in October. Both remained well ahead year-on-year, with fleet & lease value currently the second highest on record.
Issues with condition and presentation have both continued.æ Simon Henstock, UK operations director for the BCA, said:
'While average values remain exceptionally strong, this reflects the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract the same sort of attention.î
'It is important that the less desirable cars are properly appraised and valued in line with market sentiment, otherwise there is a risk they will remain unsold, putting pressure on conversion rates.æ Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket, rather than simply adhering to a one-size-fits-all pricing strategy.î